Sun, Aug 11, 2019 - Page 14 News List

Wall St down amid more trade woes

‘WHIPSAWED’:Increasing volatility and higher trade volumes on Wall Street are attracting high-frequency and short-term traders, an invest firm partner said

Reuters, NEW YORK

A trader works after the closing bell at the New York Stock Exchange on Wednesday.

Photo: AFP

US stocks fell on Friday following renewed jitters over the US-China trade dispute, capping a week of trading that saw big swings and high volume.

US President Donald Trump said the US and China were pursuing trade talks, but he was not ready to make a deal, fanning fears over the impact of the dispute on the global economy.

Trump also said that the US would continue to refrain from doing business with Chinese telecoms equipment giant Huawei Technologies Co (華為).

The week was marked by wild swings, but indices finished nearly flat on the week. This week’s volume on US exchanges was also the biggest weekly total of the year, exceeding 41 billion shares.

On Friday, all three indices were down more than 1 percent in early trading and rebounded later in the session, with the Dow Jones Industrial Average briefly turning positive at one point. This left a 315-point swing between the blue-chip index’s high and low of the day.

The frequent comments on trade are “leaving investors whipsawed,” said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey.

“As volatility has picked up, you’ve gotten more interest on the part of traders, and that in turn has led to even higher volume,” he said. “When you get moves like this and reversals, it brings a lot of high-frequency traders in and short-term traders.”

Shares of chipmakers and other tariff-sensitive technology companies fell, with the Philadelphia SE Semiconductor index down 1.8 percent.

The Dow Jones Industrial Average fell 90.75 points, or 0.34 percent, to 26,287.44, the S&P 500 lost 19.44 points, or 0.66 percent, to 2,918.65 and the NASDAQ Composite dropped 80.02 points, or 1 percent, to 7,959.14.

For the week, the Dow fell 0.7 percent, the S&P lost 0.5 percent and the NASDAQ lost 0.6 percent.

Shares of Amgen Inc on Friday jumped 5.9 percent after news that a US judge said patents relating to the Amgen’s blockbuster rheumatoid arthritis drug Enbrel were valid, denying a challenge by Novartis AG.

Uber Technologies Inc shed 6.8 percent after the ride-hailing company reported a record US$5.2 billion quarterly loss and revenue that fell short of Wall Street targets.

Nektar Therapeutics Inc shares also plunged, a day after the drug developer flagged manufacturing issues with its experimental cancer drug Bempeg.

Declining issues outnumbered advancing ones on the New York Stock Exchange by a 1.99-to-1 ratio; on NASDAQ, a 2.07-to-1 ratio favored decliners.

The S&P 500 posted 46 new 52-week highs and nine new lows; the NASDAQ Composite recorded 56 new highs and 129 new lows.

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